‘The question is close’: Tax rate election lawsuit shut down by Texas Supreme Court

AUSTIN (KXAN) — Friday, the Texas Supreme Court denied an emergency petition tied to a lawsuit that claimed Austin’s tax rate election ballot language did not adequately explain to voters how the money would be used. The proposed tax rate increase will go to voters in November.

“Relator contends that the ballot language violates the law’s minimum standards,” Justice Evan Young wrote in his decision. “The question is close. The City’s lengthy purpose statement includes a laundry list of programs and then tacks on a catchall provision.”

Ultimately, Young said the proposed tax increase must be decided not in court, but by the voters.

The Supreme Court of Texas has denied Mr. Bowen’s petition for writ of mandamus in the TRE ballot language lawsuit he filed against the City. The Court declined to issue any relief to Mr. Bowen and declined to order the City to make any changes to the ballot language. We appreciate the Supreme Court’s decision and thank the Court for its consideration. We trust Austin voters and are looking forward to them making their decision in November.

Austin Mayor Kirk Watson

The lawsuit was filed by former mayoral candidate Jeffery Bowen.

“The Supreme Court denied our petition, but Justice Young wrote separately showing the danger posed by the Council’s ballot language. We have now done all we can do in court to stop voters from being misled, a danger Justice Young recognized,” Bowen’s attorney, Bill Aleshire, wrote.

How we got here

On Aug. 14, Austin City Council signed off on its Fiscal Year 2025-26 budget and approved a property tax rate high enough it triggers an election under state law.

Should the tax rate election proposition — called Proposition Q — pass, the average homeowner’s property tax bill will go up by $302.14 annually, $197.92 of that from the TRE. That does not include rates. That money would go toward services like homelessness, public safety and parks.

Bowen filed a lawsuit just a few days later on the 19th saying the ballot language misleads voters.

“I have a lot of skepticism in understanding exactly what they’re using the money. Face it, our city has a spending problem and they have shown very well that they know how to spend but sometimes I question the viability of what they’re spending on,” Bowen told KXAN then.

According to council documents, the ballot language will say this money would: “increase housing affordability and reduce homelessness; improve parks and recreation facilities and services; enhance public health services and public safety; ensure financial stability; and provide for other general fund maintenance and operation expenditures included in the fiscal year 2025-2026 budget as approved or amended by City Council.”

At the top of the proposition, you will also see “THIS IS A TAX RATE INCREASE” as required by state law.

“Because this is a forever tax and you need to be very transparent and very clear, to me, on what you’re spending this on,” Bowen said.

On Friday, Aug. 29, the Third Court of Appeals denied Bowen’s petition. Aleshire then filed an emergency petition seeking the intervention of the Texas Supreme Court — which was also denied.

Austinites will vote on the tax rate election proposition, Proposition Q, in November.